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- PPP Loan Deadline May Be Extended as SBA Issues New Rules Relating to Loan Forgiveness and Eligibility
- California Looks to Pass Legislation Concerning Business Interruption Coverage Due to COVID-19
June 29, 2020
June 22, 2020
- PPP Loan Forgiveness Application Forms Updated and Streamlined
- Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19
- CDI Announces New Order Regarding Workers’ Compensation Premium Savings for CA Businesses Affected by COVID-19
june 15, 2020
june 10, 2020
- Note to the SBA: Debtors in Bankruptcy Are Eligible for PPP Loans
- California Modifies the Tolling of Statutes of Limitations in Civil Cases
june 8, 2020
June 4, 2020
may 29, 2020
may 28, 2020
may 27, 2020
- Hoteliers Beware: a Return to Business Post-Pandemic Brings With It Potential Legal Liability
- House Contemplates Revisions to the Paycheck Protection Program
may 15, 2020
may 14, 2020
- U.S. House Democrats Introduce HEROES Act, a New $3T Stimulus Package
- SAFE Banking Act for Cannabis-Related Businesses Included in the HEROES Act
may 12, 2020
may 8, 2020
- Treasury and the SBA Issue Guidance Regarding the Employee Retention Credit
- Businesses Reopen in Los Angeles County as Stage 2 of California’s Statewide Plan Begins
- Update: Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. County Ordinance
may 6, 2020
- SBA Extends PPP Certification Safe Harbor to May 14
- EPLI Insurance and Employee Benefits in the Age of the Coronavirus
may 5, 2020
- Update: PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
- NAIC Issues Business Interruption Data Call in the Wake of COVID-19
may 4, 2020
may 1, 2020
april 29, 2020
- Planning for Your Employees' Return to the Workplace
- Los Angeles Hospitality Workers Among Those Thrown a Potential Lifeline
april 24, 2020
- Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief
- California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19
- SEC Approves Amendments to Nasdaq and NYSE Continued Listing Requirements Due to the COVID-19 Pandemic
April 23, 2020
april 21, 2020
- Additional Funding Is on the Way to Resurrect the PPP
- Certifying Your PPP Loan: Proceed With Caution
april 17, 2020
april 16, 2020
- Employment in the Wake of Coronavirus: EEOC and OSHA Guidance Allows Employers to Go Where They Could Not Go Before
- New Yorkers Ordered to Stay at Home Even Longer Amid the COVID-19 Crisis
- Paycheck Protection Program Funds Exhausted
april 15, 2020
April 14, 2020
- Insurance Companies Have Been Ordered to Provide COVID-19-Related Premium Relief to Businesses and Drivers in California
- What to Do If Your New York Business Has Been Deemed Non-Essential
APRIL 13, 2020
- IP Deadlines and Fees Extended Under the CARES Act
- Employment in the Wake of Coronavirus: Reintegrating Your Workforce in the New Normal
APRIL 10, 2020
- You Successfully Applied for and Received a PPP Loan Under the CARES Act: Now What?
- Safer at Home Order in L.A. Extended to May 15
- Maintaining Your Trade Secrets During the Coronavirus Crisis
APRIL 9, 2020
april 8, 2020
- Congress Looks to Bolster the PPP With Another $250B in Funding
- U.S. Treasury Provides Further Guidance to PPP Borrowers and Lenders
- L.A. Mayor Amends COVID-19-Related Paid Sick Leave Ordinance
april 7, 2020
April 3, 2020
april 2, 2020
april 1, 2020
March 31, 2020
march 30, 2020
- Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. Ordinance
- Insurance Coverage Potentially Triggered by COVID-19
- Attention Insurers: CDI Orders Mandatory Call for Business Interruption Coverage Information in the Wake of COVID-19
- DOL Is Requiring Employers to Post Families First Employee Rights Notice
March 27, 2020
- A Comprehensive Guide to Understanding Coronavirus-Related State Assistance Programs: Who is Giving What to Whom (Part II)
- HHS Relaxing Enforcement of HIPAA to Facilitate Sharing of Information During the COVID-19 Crisis
March 26, 2020
march 25, 2020
march 24, 2020
- Navigating the Coronavirus Pandemic: a Critical Business Review Checklist
- SBA Loans for Companies Impacted by Coronavirus
- SEC Relaxes Federal Proxy Rules for Annual Meetings
march 23, 2020
- Federal Reserve Responds Boldly to Coronavirus-Related Economic Downturn
- The Number of Jurisdictions Implementing Stay-at-Home Orders Is Increasing Exponentially
- Michelman & Robinson’s Guide to Coronavirus-Related Paid Sick Leave and Unemployment Insurance Laws in the Tri-State Area
MARCH 21, 2020
MARCH 20, 2020
- New York Governor’s PAUSE Order
- Illinois Governor’s Statewide Stay-at-Home Order
- Force Majeure Clauses in Commercial Real Estate Contracts
MARCH 19, 2020
- SEC Provides Regulatory Relief for Public Reporting Companies
- Student Loan Borrowers Can Breathe a Sigh of Relief, At Least Temporarily
- California Governor's Statewide Stay-At-Home Order
MARCH 18, 2020
- "Shelter in Place" Orders
- Telecommuting in the Age of Coronavirus
- Families First Coronavirus Response Act Just Passed by the Senate and Signed Into Law by the President
MARCH 17, 2020
MARCH 16, 2020
MARCH 5, 2020
Los Angeles Hospitality Workers Among Those Thrown a Potential Lifeline
LARA SHORTZ
APRIL 29, 2020
The Los Angeles City Council passed an ordinance today (April 29, 2020) designed to protect hospitality, tourism, and janitorial workers in the City of Los Angeles who lost their jobs as a result of the COVID-19 outbreak. It is anticipated that Mayor Eric Garcetti will sign the ordinance into law shortly.
The ordinance as passed requires certain businesses to provide recall notices to workers let go because of the coronavirus pandemic when their positions become available once again. The notices must offer these laid-off individuals the opportunity to come back to work and, in turn, those workers have five days to accept or decline their offers.
Michelman & Robinson answers questions you may have about the pending law.
Q. What businesses and employers does the Right of Recall Ordinance apply to?
A. The ordinance applies to all of the following:
- Owners, operators, or managers of hotels in Los Angeles that either contains 50 or more guestrooms or have earned gross receipts in 2019 exceeding $5M million (this includes owners, operators managers, or lessees of any restaurant physically located within such a hotel)
- Owners, operators, or managers of event spaces in Los Angeles—those that are more than 50,000 square feet or have a seating capacity of 1,000 seats and are used for public performances, sporting events, business meetings, or similar events (e.g., concert halls, stadiums, sports arenas, racetracks, coliseums, and convention centers)
- Employers whose workers provide services at L.A. area airports, with the exception of airlines and any employer that is party to an agreement with an airport in Los Angeles that contains a worker rehire requirement
- Owners, operators, managers, or lessees (including contractors, subcontractors, or sublessees) of commercial property in Los Angeles that employ 25 or more janitorial, maintenance, or security service workers (these are the only categories of commercial property workers covered by the ordinance)
Q. What workers does the Right of Recall Ordinance apply to?
A. The ordinance applies to any person who (1) worked at least two hours a week for one of the foregoing businesses or employers, (2) did so for at least six months, and (3) was laid off on or after March 4, 2020, as a result of a lack of business, a reduction in work force, or other economic, non-disciplinary reason. Of note, the ordinance does not apply to managers, supervisors, confidential employees, or individuals working in sponsorship sales for an event center employer.
Q. What are the technical requirements of the recall notices?
A. Applicable businesses and employers (see above) must send written recall notices to applicable workers (see above). These notices are to be sent by mail (to the last known mailing address), email, and text message, and should notify any given worker that his or her job (the same or similar position) is available, or that there is another position that the worker can be trained for. If more than one worker is entitled to preference for a position, the job should be offered to the one with the most seniority.
As mentioned above, a worker who receives a recall notice has five days to accept or decline the offer of re-employment.
Q. What risks are associated with a business or employer not abiding by the Right of Recall Ordinance?
A. A worker that has been laid off may sue his or her former employer in the Los Angeles Superior Court for violation of the ordinance. Such a lawsuit subjects that employer to reinstatement of the employee, actual or statutory damages of no less than $1,000, punitive damages, and attorneys’ fees and costs.
Q. How does a collective bargaining agreement impact the Right to Recall Ordinance?
A. If a collective bargaining agreement is currently in place and it includes a right of recall provision, it will supersede the ordinance. However, if a collective bargaining agreement in effect does not include right of recall language, the ordinance will apply.
Q. Have any other similar ordinances been passed by the Los Angeles City Council?
A. Yes, along with the Right to Recall Ordinance, the Los Angeles City Council also passed the Citywide Worker Retention Ordinance that provides seniority preferences to the workers described above in the event there is a change in business ownership (e.g., a sale or transfer of a business) within two years of the COVID-19-related emergency declarations made in the City of Los Angeles and State of California.
Pursuant to the latter law, an employer that has sold or transferred its business has 15 days to provide a list of workers to the successor employer, which is then required to hire from the list by seniority for a period of six months after the business is open to the public under the new management. The successor employer must retain those workers for at least 90 days, after which time a written evaluation for a permanent position is to be conducted.
One of the takeaways from the Citywide Worker Retention Ordinance is that we can expect to see the economic effects of COVID-19 upon the hospitality, tourism, event space, and commercial property businesses for at least the next two years.
We are working diligently to keep our clients up to date on coronavirus-related developments. Nevertheless, these developments are changing daily and, in some cases even hourly, so it is important that you make sure you are dealing with the most current information. That being said, this alert is not offered, and should not be relied on, as legal advice. You should consult an attorney for guidance and counsel regarding any specific concern or situation.